Chart of the day

Where do we stand fundamentally?

As of mid-October 2024, the S&P 500 index has seen strong performance, posting a year-to-date (YTD) price return of approximately 21.92%, with a total return including dividends of 23.27%. This robust performance follows a 20%+ gain in the first three quarters, marking one of the best starts for the index in the 21st century. Historically, similar performances have led to further gains throughout the year. Key sectors driving growth include technology and financials, with optimism continuing despite market volatility. ASML and NVDA led the correction yesterday.

SPX is breaking above the ascending triangle triangle 5840 resistance. We need a confirmation here for an extension higher in the fifth uptrend Elliott Wave to 6000. Invalidation of this immediate upside extension could come upon a break below 5720.

An invalidation level of a fifth-wave long-term extension higher and a bullish cycle continuation is 5530 meaning we are in the strong bull uptrend. As said the bounce could lead to a 6200 target in the medium-term to long-term if the SPX sustains a break above 5840.

_{Try a long trade entry with a stop loss below 5800 to target 6000 and higher.}